Reddit stock price soars after social media player reports profit milestone
CBSN
Reddit's stock price is surging after the social media player notched its first profit in the company's nearly 20-year history.
Reddit on Tuesday reported net income of nearly $30 million for the third quarter, while its revenue of $348.4 million for the period topped analyst forecasts. Those figures were up from a loss of $7.4 million on sales of $207.5 million a year ago. Showing impressive customer growth, the business now has more than 97 million daily users, up 47% from a year ago.
A key factor behind Reddit's fast growth of late is artificial intelligence. In a letter to shareholders, Reddit co-founder and CEO Steve Huffman said a new AI-powered service that lets people translate posts between English, French, Spanish, Portuguese, Italian and German quadrupled its number of users. Reddit plans to roll out the feature to more than 30 countries over the course of 2025, he added.
Legalizing marijuana at the national level is generally popular with Americans — 57% of people say marijuana should be legal for both medical and recreational purposes, while 32% say it should be legal for medical use only, according to a January Pew survey. Only 11% of Americans said it shouldn't be legal at all. The issue is one presidents have largely ignored, but Vice President Kamala Harris and former President Donald Trump have talked about the issue during the 2024 campaign.